ROHNERT PARK, Calif., March 2, 2018 /PRNewswire/ -- Family finances can get pulled in many different directions, so it can be hard for a family to save money for anything. Financial experts often urge individuals to put money into a retirement plan, but parents may also want to save for their kids' future college educations. While 44 percent of parents prioritize retirement savings over saving for college, 26 percent are putting money into a 529 account for their child. However, 529 plans may not be right for every family. Ameritech Financial, a document preparation company that assists clients in applying for federal repayment plans, supports borrowers whose student loans may get in the way of other financial goals.

"Saving for college can be tough, but it's natural for parents who took out loans to pay for their own higher education to not want their kids to experience a similar debt burden," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Parents who manage to help their kids through college without taking on more debt themselves are doing their children a great service for their future."

Funding a college education can be tricky, especially when families can't cover the whole cost. A recent survey showed that more than half of 529 plans have less than $10,000, which may only cover the first year at an average public university. Plus, those 529 funds are considered part of the expected family contribution when colleges calculate financial aid packages, which could mean a lower need-based aid offering and potentially more student loans.

Parents who decide to go the 529 plan route will need to choose one of two plan options: prepaid tuition or savings plan. Parents who prepay tuition typically lock in current prices, but their child may only be able to use that money at in-state public colleges. The savings plan is an investment account similar to a 401(k) and the recipient will be able to use those funds at any public or private school in the nation.

When parents have their own student loans but want to put aside money for their children, they may need help balancing the two. Ameritech Financial can assist borrowers in applying for federal income-driven repayment plans that may lower their monthly payments enough to free up some extra money to go into a savings account or 529 plan. The company also helps graduates who may have ended up with higher monthly loan payments than they anticipated.

"Getting a college degree can increase anyone's lifetime earnings, but large student loan payments may take a big portion of that," said Knickerbocker. "The lower their loan payments, the more borrowers will be able to focus on their career instead of the debt. Ameritech Financial can help borrowers reduce that monthly debt burden."

About Ameritech Financial

Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.

Ameritech Financial is a member of the Association for Student Loan Relief (AFSLR) and each representative on the phone has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).